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OPERATIONAL RISK MANAGEMENT:BUILDING A STRONG BUSINESS FOUNDATION
Key benefits of Operational Risk Management:
Maintain rightTo operate
Ensures that our people And our neighbors are
Safe and healthy
Ensures significant Savings through
Operational efficiencies
WHY OPERATIONAL RISK MANAGEMENT?A successful business must protect
key components of its operations:
Operational Risk Management prevents loss by identifying, evaluating and controlling hazards and differentially managing associated risks.
The most effective approach to risk management combines both technical and behavioural solutions.
• PEOPLE• ASSETS• ENVIRONMENT
INTEGRATION: THE KEY TO SUCCESSThe most effective approach to risk management
combines both technical and behavioral solutions.
Technical Model
• Defines hazards• Assesses associated risks
• Provides standards and procedures
• Sets the strategy and tactics
• Monitors performance• Sets up the organizational structure
Managing Processes
Mindsets and Behaviours
• Engages corporate leadership
• Encourages ownership of results
• Builds company-wide safety culture
• Motivates employees• Communicates expectations
• Promotes teamwork and collaboration
Capability Engine
all elements of an Operational Risk Management system must be addressed.
0 INCIDENTS AND 0 INJURIESTo achieve
THE RISK-BASED APPROACHNot all risks are the same.
Because organizations have limited
resources, it isn’t practical to respond
equally to all risks. • No one-size-fits-all approach to managing risk
• Risks are assessed by frequency and occurrence
• Proportionality is paramount in risk response
• Resources must be deployed to reap maximum benefit
THE HUMAN ELEMENT TO RISK
An Operational Risk Management
system will achieve better results
if it takes into account how
individuals interact with each
other, with facilities and
equipment, and with
management systems.
Its critical to consider the following human factors:
• Pressure and stress • Human factor integration• Human error and non-compliance
• Organizational change• Human reliability analysis• Training and competences
THE DUPONT BRADLEY CURVE: BENCHMARK GROWTH
Risk Reduction & Control
REACTIVE
Inci
dent
& In
jury
Rat
e
Ope
rati
onal
Exc
elle
nce
DEPENDENT INDEPENDENT INTERDEPENDENT
Value Generation & Operatio
nal Discip
lin
e
Stabilize & Maximize Efficiency
Shift in Values,Attitudes & Beliefs
• Time• Attention• Resources
Reactive
Employees do not take
responsibility and believe
safety is more a matter of
luck than management.
Dependent
People see safety as a
matter of following rules
that someone else makes.
Independent
Individuals take responsibility
for themselves, believing that
safety is personal and that
their own actions make a
difference.
Interdependent
Teams feel ownership for
safety, believing that
improvement can only be
achieved as a group—and
that zero injuries is an
attainable goal.
The real strength of a management system is reflected in
the cultural maturity of the enterprise. Indeed, we often
see correlations within an organization with elevated
culture and effective management processes having
superior technical practices and achieving better results:
CULTURAL MATURITY: TRUE MEASURE OF PROGRESSThe real strength of a management system is reflected in the cultural maturity of
the enterprise. As an organization moves towards an interdependent state, it
begins to excel in areas such as operations risk, productivity and overall
operations excellence.
DuPont Sustainable Solutions helps organizations achieve a mature and elevated culture that demonstrates all the ingredients of an engaged workforce, including problem solving and innovation capabilities.
sustainablesolutions.dupont.comi
Copyright © 2015 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Embracinggrassroots leaders
Adopting a collaborative and
team-based culture
Focusing on learning and development
Building a sense of ownership and pride
have been proven to propel organizations towards operational excellence:
4 KEYORGANIZATIONALCHARACTERISTICS